hi, im 19 and have save about 11,000+ from working practically my integral life. I own about 9000 spotted in different 12/9 month CD beside a reasonable interest rate. Can i be doing more? Any design? I also have nearly 2,500 additional invested within various stocks and i resembling to think they are diversified. any thinking?
Answers: Congradulations on a excellent start. You are doing better than 90% of the people your age.
The push button to your answer is risk. Keep in mind that at 19, you can afford to invest contained by risky (though that doesn't mean stupid) investments because you will enjoy plenty of time to start again even if you lose it all.
Generally, the riskiest investments dispense the highest return, but risking everything is probably not a perfect idea, so you do something surrounded by between.
1. Buy insurance to cover the major disasters, and maintain enough money surrounded by cash (including severely safe, hugely liquid investments) to cover emergency such as losing your job.
2. Keep money that you intend on spending within the next few years surrounded by low risk investments. If you are saving money to buy a house, you don't want to lose that money. This money also give you a cushion so that if even if you lose all the money surrounded by your high risk investmests, you enjoy money to start over with.
3. Diversification is angelic, but $2500 is not enough money to diversify contained by individual stocks. Consider investing in a mutual fund for better diversification. A stock index mutual fund is usually the best choice surrounded by your situation.
4. Don't forget about retirement accounts. The best return is across the world made through retirement accounts (because of the tax-free and tax-deferred aspects), but keep within mind that the money won't be available for spending for 40 or so years.
We can't make proper suggestions minus knowing your goals (time horizon) for the money. hold you considered T-Bills?
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Answers: Congradulations on a excellent start. You are doing better than 90% of the people your age.
The push button to your answer is risk. Keep in mind that at 19, you can afford to invest contained by risky (though that doesn't mean stupid) investments because you will enjoy plenty of time to start again even if you lose it all.
Generally, the riskiest investments dispense the highest return, but risking everything is probably not a perfect idea, so you do something surrounded by between.
1. Buy insurance to cover the major disasters, and maintain enough money surrounded by cash (including severely safe, hugely liquid investments) to cover emergency such as losing your job.
2. Keep money that you intend on spending within the next few years surrounded by low risk investments. If you are saving money to buy a house, you don't want to lose that money. This money also give you a cushion so that if even if you lose all the money surrounded by your high risk investmests, you enjoy money to start over with.
3. Diversification is angelic, but $2500 is not enough money to diversify contained by individual stocks. Consider investing in a mutual fund for better diversification. A stock index mutual fund is usually the best choice surrounded by your situation.
4. Don't forget about retirement accounts. The best return is across the world made through retirement accounts (because of the tax-free and tax-deferred aspects), but keep within mind that the money won't be available for spending for 40 or so years.
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We can't make proper suggestions minus knowing your goals (time horizon) for the money. hold you considered T-Bills?
Resolved Questions: